A Nyamira County tea factory has recorded its worst sales records since 1995 and directly attributed the losses to upcoming private tea companies in Nyamira and Bomet counties that have continued to woe loyal farmers.
Nyankoba Tea Factory’s total annual profits for 2014/15 dropped from Sh725 million to the record low of Sh354 million, prompting the management to hold an urgent meaning to discuss the outcome.
In 1995, the company is said to have sold approximately 1.23 million kg of tea, the figure that almost repeated itself with 1.25 million kg recorded this year, a drastic drop from 4.66 million kg of 2014.
This means that farmers from the region will be subjected to little bonuses with the managing director, Peter Onduso, insisting that farmers have to bear with the company.
Speaking during the meeting on Monday, Mr Onduso called for stiff regulations against the private entities to minimise their continued influence to the local farmers.
“The truth of the matter is Kenya Tea Development Authority must look for ways of minimising the influence of private companies in the Western segment. We are recording poor sales not because we have but basically because the quantity of the products we are getting is reducing daily because our farmers are running away,” he said.
According to him, the company had settled of Sh15 per kilo in the expected October bonuses due to reduced quantity of the tea product received in the company from last year’s Sh23 and reiterated importance of farmers sticking with the public owned companies.
“We have tried to do civic education by urging famers to be vigilant and shun private companies but none seems to be listening. They are likely to receive small bonuses compared to previous years for that reason. Private companies do not give bonuses and they know that,” he added.
He said the tea company could be compelled to reduce its workforce in a bid to minimise the ballooning wage bill to run its departments without much financial constraints.
Kipkebe and Kerito tea companies are among the private companies in the region.